EU forest pact gives Vietnam timber firms a leg up

HCM
City (VNA) - Once the EU-Vietnam Voluntary Partnership Agreement on
Forest Law Enforcement, Governance and Trade (VPA-FLEGT) comes into force,
there will be opportunities for Vietnam to export more wooden products to
Europe and other markets, delegates told a seminar in HCM City on June 13.

A
VPA is a voluntary trade agreement between the EU and countries making wooden
products to promote trade in legal timber and ensure only legally harvested
timber is imported into the EU from these countries.

Vietnam
and EU concluded VPA negotiations last month.

According
to delegates, the forest pact would increase the competitiveness of Vietnamese
timber products compared to those from countries that do not have much control
over the forestry sector.

Speaking
at a seminar on promoting furniture and handicraft exports to European market,
Jana Herceg, deputy head of the trade and economic section of the Delegation of
the European Union to Vietnam, said Vietnam is the second country in ASEAN
after Indonesia to conclude this agreement.

So
when the VPA-FLEGT agreement takes effect, it would further boost the export of
furniture products, she said.

European
consumers want to know about labour conditions and corporate social
responsibility standards, she said.

If
Vietnamese companies understand consumers demand and meet these conditions,
they have the opportunity to boost exports to Europe, she said.

To
penetrate the market, good quality is the first thing firms need to have, she
said.

“Once
you have the products you have to make sure that people know about your
products, you need to have good marketing and good branding.”

Bui
Thi Viet Anh of the Institute of Policy and Strategy for Agriculture and Rural
Development said VPA-FLEGT certificates would help increase opportunities to
export to other important markets.

But
the process is relatively complicated, and increases costs and administrative
procedures in Vietnam, she said.

Enterprises
also face trade barriers and intense competition from other exporters to the
market, which require them to improve quality, access to information and
competitiveness.

They
need to ensure legal timber sources by increasing import of raw materials from
low-risk countries, connecting with importers in developed countries, and
investing in timber growing in Vietnam, she said.

Nguyen
Chanh Phuong, deputy chairman of the Handicrafts and Wood Industry Association
of HCM City, said besides branding, product design and price are two important
factors in the competitiveness of the wooden sector.

European
consumers’ habits are changing, and exporters need to catch up on these trends,
he said.

Johannes
Schwegler of the Swiss Import Promotion Programme said there is an emerging
trend of using laminated flooring and bamboo products as substitutes for
tropical timber because of their environmental-friendliness and technical
properties.

Solid
wood-based products, which are the strength of Vietnamese firms, still have
opportunities for growth, but Vietnamese firms should keep abreast of market
trends, he said.